Money Wellness
A young couple go through their finances
category iconcost of living
calendar icon02 Aug 2023

Cost of living crisis ‘starting to hit wealthier households’

The cost-of-living crisis is no longer affecting only low-income households, a new study has found. Research by Grant Thornton and Retail Economics has predicted, by May 2024, the typical household will be £2,300 worse off than in October 2021.

CEO at Retail Economics Richard Lim explained the “relentless rise in interest rates” means the cost-of-living crisis is no longer restricted to the least affluent households.

He said more and more households were struggling with housing costs due to rising interest rates.

“As pandemic savings have been whittled away, the squeeze on finances has become a war of attrition for many households."

Lim predicted households are probably looking at another ten months of pain when they’ll be forced to try and cut back on spending.

The study found 37% of households questioned in May this year said they were planning to make cutbacks in all areas, compared to 24% 12 months earlier.

Money Wellness findings

The study’s findings tally with our own statistics which show the number of people coming to us for debt advice has risen consistently over the past three months.

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

Related posts

cost of living

14 Jun 2024

Supporting kids’ sporting dreams is a nightmare for hard-up families

Ahead of an exciting summer of sport, we’ve been investigating how financial hardship affects kids’ sporting ambitions.

cost of living

12 Jun 2024

Cost-of-driving crisis could force millions to sell their cars

Rising car expenses are taking a toll on UK drivers, with many saying they will have to sell their cars to stay afloat.

cost of living

10 Jun 2024

Those with the least ‘hardest hit by tax and benefit changes since 2010’

As a new report finds the poorest households have been hit hardest by tax and benefit changes made since 2010, find out what help's available if you're struggling.

cost of living

05 Jun 2024

“All I do is work to live”: full-time worker confronts PM in election debate

A woman told Rishi Sunak during the first general election debate that she’s finding it hard to “make ends meet”. Find out what support you can get if you’re being affected by the cost-of-living crisis.